Factories’ soft landing provides a glimmer of hope

The decline in manufacturing was less than analysts’ expectations of a 4.1 per cent drop and prompted the ONS to revise the second-quarter fall in industrial output to -0.9 per cent, from -1.3 per cent

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The decline in manufacturing was less than analysts’ expectations of a 4.1 per cent drop and prompted the ONS to revise the second-quarter fall in industrial output to -0.9 per cent, from -1.3 per centSimon Dawson/Getty

Kathryn Hopkins

Last updated at 12:01AM, August 8 2012

The British economy may not have shrunk by as much as thought in the second quarter, despite the decline in manufacturing output in June.

The Office for National Statistics said that activity in the manufacturing sector fell by 2.9 per cent in June because many factories closed for the extra bank holiday created for the Diamond Jubilee celebrations. The wider measure of industrial production, which includes energy and mining, was down by 2.5 per cent.

However, the decline in manufacturing was less than analysts’ expectations of a 4.1 per cent drop and prompted the ONS to revise the second-quarter fall